(Alliance News) - Garda World Security Corp on Thursday said it has received clearance from competition regulators in North America for a combination with G4S PLC.
In September, the board of FTSE 250-listed security services provider G4S rejected Montreal-based GardaWorld's cash offer, saying it undervalued the company.
However, in October, GardaWorld directly approached G4S shareholders with the same GBP3 billion offer. This came after G4S confirmed a rival buyout approach from US security and facility services company Allied Universal Security Services.
GardaWorld on Thursday said it has gotten the green light from competition regulators in Canada and the US for a combination with G4S to proceed without requiring any further investigation or remedial action.
GardaWorld added that it believes a merger of Allied and G4S would raise "significant competition issues" in the US.
"We are pleased to have cleared North American antitrust reviews swiftly and without conditions. Unlike other real or imagined bidders, our financing is agreed, our offer is a matter of public record and our intent is serious," said GardaWorld Founder & Chief Executive Stephan Cretier.
G4S shares were up 0.8% at 215.00 pence on Thursday. GardaWorld's offer is 190p per share, while Allied Universal's is "at least" 210p.
By Lucy Heming; lucyheming@alliancenews.com
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